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Minutes of the October 24,2016,M Eeting of the Board of Regents

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Minutes of the October 24,2016,M Eeting of the Board of Regents MINUTES OF THE OCTOBER 24, 2016, MEETING OF THE BOARD OF REGENTS ATTENDANCE This scheduled meeting of the Board of Regents (“Board”) of the Smithsonian Institution (“Smithsonian”) was held on Monday, October 24, 2016. The Board conducted morning, afternoon, and executive sessions in the Regents’ Room and the Commons of the Smithsonian Castle in Washington, DC. Board Chair John W. McCarter, Jr., called the meeting to order at 8:29 a.m. Also present were Regents: Barbara M. Barrett Robert P. Kogod Steve Case Risa J. Lavizzo-Mourey John Fahey Michael Lynton Shirley Ann Jackson David M. Rubenstein Robert MacDonald, Smithsonian National Board Chair Alan G. Spoon, Advancement Committee Chair The Chief Justice, Vice President, Senator John Boozman, Senator David Perdue, Senator Patrick J. Leahy, Representative Xavier Becerra, Representative Tom Cole, Representative Sam Johnson, and Investment Committee Chair Tim O’Neill were unable to attend the meeting. Also present by invitation of the Board were: David J. Skorton, Secretary Kirk Johnson,2 Sant Director of the National Patricia Bartlett, Acting Assistant Secretary Museum of Natural History Richard Kurin, Acting Provost/Under Secretary for Education & Access Museums & Research Greg Bettwy, Chief of Staff to the Secretary Epin Christensen,1 Counsel to the Inspector John K. Lapiana, Deputy Under Secretary for General Finance & Administration and Acting Assistant Secretary Communications & External Affairs Virginia B. Clark, Assistant Secretary for Judith Leonard, General Counsel Advancement Jennifer Ehlinger, Office of the Regents Senior Era Marshall, Director for the Office of Equal Employment and Minority Affairs Researcher & Writer (recorder) 1 1 Kevin McDonald , Senior Adviser to Senator Leahy Rachel Goslins, Director for the Arts & Industries Jeffrey P. Minear, Counselor to the Chief Justice Building Amanda Hamilton,1 Assistant to Representative Rachel Parker, Deputy Chief of Staff to the Regents Johnson 1 Nell Payne,1 Director of Government Relations Toni-Marie Higgins, Assistant to Senator Boozman Albert Horvath, Under Secretary for Finance & Porter N. Wilkinson, Chief of Staff to the Regents Administration/Chief Financial Officer ____________________________ 1 Participated in the morning session only. 2 Participated in the afternoon session only. MORNING SESSION EXECUTIVE SESSION: BOARD LEADERSHIP ELECTIONS AND SMITHSONIAN CHANNEL UPDATE The meeting of the Board of Regents began with an executive session. The Board discussed leadership positions for 2017 and received an update on the status of the Smithsonian Channel Put option. Board Leadership The Board reviewed the Governance and Nominating Committee’s Elections recommendations for 2017 leadership. The Governance and Nominating Committee is charged with nominating candidates for election as Chair, Vice Chair, and member of the Executive Committee. The Chair and Vice Chair are elected for a term of one year and may serve no more than three consecutive terms. Having served three consecutive terms, current Board Chair John W. McCarter, Jr., and Vice Chair Shirley Ann Jackson will conclude their respective terms on January 30, 2017. The Governance and Nominating Committee recommended that the Board appoint David Rubenstein as Chair, Steve Case as Vice Chair, and Dr. Risa J. Lavizzo-Mourey as the third Executive Committee member to serve as the 2017 Board leadership team. As candidates under consideration, Mr. Rubenstein, Mr. Case, and Dr. Lavizzo-Mourey recused themselves from the discussion and vote. Upon motion duly made and seconded, the elections were approved en banc. See attached Actions 2016.10.01-2016.10.03 (Minutes of the Board of Regents, Appendix A). Smithsonian Channel Secretary Skorton provided an update on the Smithsonian Channel Put Option. Update In 2011, the Smithsonian purchased additional equity interest in the Smithsonian Channel (“Channel”). The Smithsonian’s joint venture agreement with its partner, Showtime, provided that the Smithsonian could sell back (“put”) to its partner a portion, or all, of its ownership interest in 2014, 2016, or 2018. Under the agreement, Showtime is only obligated to execute against one of these possible dates. The Smithsonian declined to exercise this option in January 2014. The Board voted during its special telephonic meeting on May 1, 2016, to exercise the put option and sellback a portion of its equity stake in the Smithsonian Channel. On May 2, 2016, the Smithsonian initiated the formal put process by issuing a notice to Showtime. The Secretary updated the Board on the status of the negotiations and sought the Board’s advice on how best to proceed. The executive session adjourned at 9:03 a.m. 2 OPEN SESSION Smithsonian and Regent staff members entered the room and the meeting Welcome and Introductions reconvened. Mr. McCarter called the open session to order at 9:08 a.m., welcomed everyone, and called for introductions around the room. REPORT OF THE BOARD AND EXECUTIVE COMMITTEE CHAIR Important Upcoming Mr. McCarter noted important upcoming dates, including a dinner reception to dates be held on November 14, 2016, at the Cooper Hewitt, Smithsonian Design Museum in New York, NY to honor and posthumously award former and inaugural Investment Committee Chair David Silfen with the Regents’ Gold Medal for Exceptional Service. Mr. McCarter also announced that the next Board meeting is scheduled to be held on Monday, January 30, 2017. Recognition of Mr. McCarter reviewed the first item for the full Board’s consideration: the Congressman Steven recognition for former Regent Congressman Steven LaTourette who passed LaTourette away in August 2016. Congressman LaTourette served as a Congressman from Ohio for 18 years and provided invaluable support to the Smithsonian through his service on the Board of Regents and through his service on the House Appropriations Committee. Upon motion duly made and seconded, the Board voted to extend its sincere appreciation for the dedication and service of Congressman LaTourette to the Smithsonian and to the nation. See attached Actions 2016.10.04 (Minutes of the Board of Regents, Appendix A). Recognition of Mr. McCarter noted the recent passing of former Regent William G. Bowen, William G. Bowen who served as a dedicated Regent and was an influential educator who transformed the landscape of higher education. Mr. McCarter asked the Board to pass a resolution to formally honor and recognize the many contributions of Mr. Bowen to the Smithsonian. Upon motion duly made and seconded, the Board voted to expresses its profound appreciation to the memory of Mr. Bowen as a former Regent, distinguished and influential educator, and friend of the Smithsonian and to extend its heartfelt sympathies his family. See attached Actions 2016.10.05 (Minutes of the Board of Regents, Appendix A). Award of Joseph Mr. McCarter presented the next item for the Board’s consideration: the Henry Medal award of the Joseph Henry Medal to Dr. Elizabeth Broun, the Margaret and Terry Stent Director of the Smithsonian American Art Museum. Ms. Broun will be retiring from the Smithsonian at the end of November 2016, and the Secretary proposed awarding Betsy with the Henry Medal to recognize her many contributions to the Smithsonian. Upon motion duly made and seconded, the Board voted to present the Joseph Henry Medal to Dr. Elizabeth Broun, in recognition of her manifold contributions to the Smithsonian, most 3 significantly the transformation of the Smithsonian American Art Museum into an intellectually vibrant, pre-eminent institution that serves scholars, educators, and the public. See attached Actions 2016.10.06 (Minutes of the Board of Regents, Appendix A). Mr. McCarter reminded Regents and staff that both the motion and award should be treated as confidential until officially announced at Dr. Broun’s farewell dinner in late November. Next, Mr. McCarter reported that, on behalf of the Board, the Executive Actions Between Committee approved ten actions between the June and October meetings. Meetings The Executive Committee voted by email ballot, on behalf of the Board, to approve nine gifts, all requiring expedited approval in order to facilitate the timing of specific programs and announcements related to the grand opening of the National Museum of African American History and Culture (“NMAAHC”). The other action taken by the Executive Committee on behalf of the Board was the approval of the Smithsonian’s fiscal year 2017 Federal and Trust Consolidated Budget. Lastly, Mr. McCarter updated the Board on the status of the former Former Secretaries’ Secretaries’ portraits. The portrait of Larry Small has been completed and the Portrait Fund portrait of Dr. G. Wayne Clough should be completed within the next month. Mr. McCarter asked the Regents to consider making a donation to help cover the final costs of framing and shipping for both of the portraits. APPROVAL OF THE CONSENT AGENDA Adoption of the The Board reviewed the meeting’s Consent Agenda (“Agenda”). Procedures of Consent Agenda the Board’s use of the Agenda mandate that an item will remain on the Agenda only by unanimous consent, and any Regent may ask the Office of the Regents to remove an item from the Agenda for discussion by providing three- days’ notice in advance of the scheduled Board meeting. Action items listed on the present meeting’s Agenda include the draft minutes of the June 13, 2016, Board meeting; the appointment and reappointment of candidates to 13 Smithsonian Advisory Boards; and the proposed amendments
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